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Investors & landlords
You might consider reporting the ISO transaction that is producing the error as a regular stock trade. Given that your strike price was greater than the FMV on the date of exercise, and if your sale was a disqualified disposition, then you don't have to report any part of gain as ordinary income. If your sale was a qualified disposition, you report your gain as a capital gain as no part of that gain needs to be reported as ordinary income. In either scenario, it seems you are just reporting the gain as a capital gain. Thus, reporting the sale as a regular stock trade should eliminate the error. In other words, report your basis (strike price) and your sale proceeds, along with your holding period.
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‎April 19, 2023
3:26 PM